Other measures and activities

Published: 14/12/2017 Modified: 28/2/2019

Recommendation on actions in granting non-housing consumer loans

In efforts to mitigate credit risk in consumer loans, as part of its task of contributing to the stability of the financial system as a whole and in line with pursuing an intermediate macroprudential policy objective, the CNB recommends to all credit institutions providing lending services to consumers in the Republic of Croatia that, in determining a consumer’s creditworthiness for all non-housing consumer loans with original maturity equal to or longer than 60 months, they take into consideration minimum costs of living that may not be less than the amount prescribed by the act governing a part of salary exempted from foreclosure.

In efforts to mitigate interest rate risk for consumers and interest rate-induced credit risk for banks, the CNB adopted a recommendation for credit institutions to mitigate that risk. It is recommended that credit institutions offer clients the possibility of changing loan financing conditions so that consumers having loans with variable interest rates could protect themselves against interest rate risk.